Skansin is located on a hill beside the port of Tórshavn. The fort was built in 1580 by Magnus Heinason to protect against pirate/slave raids of the town, after he himself was nearly caught up in one such raid. The fort was expanded considerably in 1780 and went through a series of rebuilds for many years afterwards.

During the Second World War the fort served Britain as a military base after the British occupation of the Faroe Islands in April 1940.